Iran’s Oil Minister Resigns Amid Blockade and Revenue Scandal

Mohsen Paknejad, Iran’s Minister of Petroleum, has resigned from President Masoud Pezeshkian’s government amid a growing crisis in the oil sector, which generates about one-third of Iran’s national budget. The resignation comes as Iran faces a naval blockade and heightened scrutiny over its oil sales methods and revenue repatriation. Despite the challenges, officials have attributed Paknejad’s departure to personal reasons, with President Pezeshkian initially rejecting his resignation before ultimately accepting it.

The crisis deepened as U.S. Treasury Secretary Scott Bessent reported that Iran loaded zero barrels of crude oil onto tankers in September, a claim supported by vessel-tracking data from Bloomberg, Kpler, and Vortexa. Paknejad had previously maintained that revenue from oil sales was being collected, but the reality of volatile sales and dwindling revenues is evident in the soaring U.S. dollar exchange rate, which authorities are now trying to stabilize.

The dispute over oil sales has created a rift not only between Tehran and Washington but also among Iranian officials. While U.S. President Donald Trump claimed a record amount of oil transiting the Strait of Hormuz, Iranian officials have made contradictory statements. Central Bank Governor Abdolnaser Hemmati admitted that Iran has no oil exports, while outgoing Minister Paknejad insisted that sales had not stopped, though he declined to provide details.

Beyond the blockade, the Ministry of Petroleum faces domestic challenges, particularly regarding financial trustees, intermediaries who sell sanctioned oil and repatriate proceeds through informal channels. Disputes over unreturned funds have escalated, with officials citing figures ranging from $6.7 billion to $11 billion in unpaid debts. Parliamentary pressure has intensified, with lawmakers drafting inquiries into oil sales and debt collection methods, focusing on specific trustees and their role in the crisis.